8:30am (NY Time) CA GDP m/m Forecast 0.4% Previous 0.1%
We’ll be trading the Canadian Gross Domestic Product (GDP) month on month figure, which is defined (from wikipedia) as “the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time.” GDP number has a direct and strong effect on the Interest rate of the currency, and it affects BOC´s short-term rate decision directly.
GDP came out worse than expected, with the market pricing in the opposite outcome pre-news, it was a golden opportunity to go long on USD/CAD. As we got in around the 30′s, we held on to the trade until 9:45am and got out around 40~50 pips of gain. In the video I closed with about 15 pips, but I did explain the potential and we got as close as the 90′s with USD/CAD.